Title 42, The Public Health and WelfareRelease 119-110
§300x–26 Sale of Tobacco Products to Individuals Under Age of 21
Title 42 › CHAPTER 6A — PUBLIC HEALTH SERVICE › SUBCHAPTER XVII — BLOCK GRANTS › Part B — Block Grants Regarding Mental Health and Substance Use › subpart ii — block grants for substance use prevention, treatment, and recovery services › § 300x–26
Summary
States must do random, unannounced yearly checks of stores to make sure they do not sell tobacco to people under 21. Each year the State must send the Secretary a short report about what it did, how well it worked, and the plans for the coming fiscal year. Before giving a grant, the Secretary checks if the State followed these rules. If a State is found not to be following them, and after notice and a hearing, the Secretary can cut that State’s grant by up to 10% for that year. A State can avoid a cut if by May 1 it certifies it will put in extra State money equal to 1% of its federal allocation for every percentage point it missed the Secretary’s retailer compliance goal, or if it agrees to a corrective action plan the Secretary approves, or if it is a territory getting under $1,000,000 that year. If a State adds money, it must keep its prevention and compliance spending at least at last year’s level plus the new money and must report obligations and last year’s spending by July 31. The Secretary will not withhold funds for the 3 years after December 20, 2019, may use discretion for the next 2 years, must update rules within 180 days after December 20, 2019, provide technical help and coordinate with the FDA, and award transitional grants. Congress authorized $18,580,790 for each year 2020–2024 for those grants; the transitional program ends after September 30, 2024.
Full Legal Text
Title 42, §300x–26
The Public Health and Welfare, Source: USLM XML via OLRC
(a)In general
A funding agreement for a grant under section 300x–21 of this title is that the State involved will—
(1)annually conduct random, unannounced inspections to ensure that retailers do not sell tobacco products to individuals under the age of 21; and
(2)annually submit to the Secretary a report describing—
(A)the activities carried out by the State to ensure that retailers do not sell tobacco products to individuals under the age of 21;
(B)the extent of success the State has achieved in ensuring that retailers do not sell tobacco products to individuals under the age of 21; and
(C)the strategies to be utilized by the State to ensure that retailers do not sell tobacco products to individuals under the age of 21 during the fiscal year for which the grant is sought.
(b)Noncompliance of State
(1)In general
Before making a grant under section 300x–21 of this title to a State, the Secretary shall make a determination of whether the State has maintained compliance with subsection (a). If, after notice to the State and an opportunity for a hearing, the Secretary determines that the State is not in compliance with such subsections, the Secretary shall reduce the amount of the allotment under such section for the State for the fiscal year involved by an amount up to 10 percent of the amount determined under section 300x–33 of this title for the State for the applicable fiscal year.
(2)Limitation
(A)In general
A State shall not have funds withheld pursuant to paragraph (1) if such State for which the Secretary has made a determination of noncompliance under such paragraph— (i)
(ii)agrees to comply with a negotiated agreement for a corrective action plan that is approved by the Secretary and carried out in accordance with guidelines issued by the Secretary; or
(iii)is a territory that receives less than $1,000,000 for a fiscal year under section 300x–21 of this title.
(B)Certification
(i)In general
The amount of funds to be committed by a State pursuant to subparagraph (A)(i) shall be equal to 1 percent of such State’s allocation determined under section 300x–33 of this title for each percentage point by which the State misses the retailer compliance rate goal established by the Secretary.
(ii)State expenditures
For a fiscal year in which a State commits funds as described in clause (i), such State shall maintain State expenditures for tobacco prevention programs and for compliance activities at a level that is not less than the level of such expenditures maintained by the State for the preceding fiscal year, plus the additional funds for tobacco compliance activities required under clause (i). The State shall submit a report to the Secretary on all State obligations of funds for such fiscal year and all State expenditures for the preceding fiscal year for tobacco prevention and compliance activities by program activity by July 31 of such fiscal year.
(iii)Discretion
The Secretary shall exercise discretion in enforcing the timing of the State obligation of the additional funds required by the certification described in subparagraph (A)(i) as late as July 31 of such fiscal year.
(C)Failure to certify
If a State described in subparagraph (A) fails to certify to the Secretary pursuant to subparagraph (A)(i) or enter into, or comply with, a negotiated agreement under subparagraph (A)(ii), the Secretary may take action pursuant to paragraph (1).
(c)Implementation of reporting requirements
(1)Transition period
The Secretary shall—
(A)not withhold amounts under subsection (b) for the 3-year period immediately following December 20, 2019; and
(B)use discretion in exercising its authority under subsection (b) during the 2-year period immediately following the 3-year period described in subparagraph (A), to allow for a transition period for implementation of the reporting requirements under subsection (a)(2).
(2)Regulations or guidance
Not later than 180 days after December 20, 2019, the Secretary shall update regulations under part 96 of title 45, Code of Federal Regulations or guidance on the retailer compliance rate goal under subsection (b), the use of funds provided under section 300x–21 of this title for purposes of meeting the requirements of this section, and reporting requirements under subsection (a)(2).
(3)Coordination
The Secretary shall ensure the Assistant Secretary for Mental Health and Substance Use coordinates, as appropriate, with the Commissioner of Food and Drugs to ensure that the technical assistance provided to States under subsection (e) is consistent with applicable regulations for retailers issued under part 1140 of title 21, Code of Federal Regulations.
(d)Transitional grants
(1)In general
The Secretary shall award grants under this subsection to each State that receives funding under section 300x–21 of this title to ensure compliance of each such State with this section.
(2)Use of funds
A State receiving a grant under this subsection— (A)
(B)in the case of a State for which the Secretary has made a determination under subsection (b) that the State is prepared to meet, or has met, the requirements of subsection (a), may use such funds for tobacco cessation activities, strategies to prevent the use of tobacco products by individuals under the age of 21, or allowable uses under section 300x–21 of this title.
(3)Supplement not supplant
Grants under this subsection shall be used to supplement and not supplant other Federal, State, and local public funds provided for activities under paragraph (2).
(4)Authorization of appropriations
To carry out this subsection, there are authorized to be appropriated $18,580,790 for each of fiscal years 2020 through 2024.
(5)Sunset
This subsection shall have no force or effect after September 30, 2024.
(e)Technical assistance
The Secretary shall provide technical assistance to States related to the activities required under this section.
Legislative History
Notes & Related Subsidiaries
Editorial Notes
Prior Provisions
A prior section 1926 of act
July 1, 1944, was classified to section 300x–12 of this title prior to repeal by Pub. L. 102–321. Another prior section 1926 of act
July 1, 1944, was classified to section 300y–5 of this title prior to repeal by Pub. L. 99–280.
Amendments
2022—Subsec. (b)(2)(B)(i). Pub. L. 117–328 struck out “substance abuse” before “allocation”. 2019—Pub. L. 116–94, § 604(a)(1), struck out “State law regarding” before “sale” and substituted “21” for “18” in section catchline. Subsec. (a). Pub. L. 116–94, § 604(a)(3), (4), redesignated subsec. (b) as (a) and amended subsec. (a) generally. Prior to amendment, subsec. (a) related to the requirement of State
Enforcement
of law in a manner that can reasonably be expected to reduce the extent to which tobacco products are available to individuals under the age of 18 in order to qualify for funding agreements for grants under section 300x–21 of this title, and activities and reports regarding such
Enforcement
. Pub. L. 116–94, § 604(a)(2), struck out subsec. (a), which required grants under section 300x–21 of this title for fiscal year 1994 and subsequent fiscal years to be based on the existence of State law forbidding sale or distribution of tobacco products to any individual under the age of 18, and providing delayed applicability of requirement for certain States. Subsec. (b). Pub. L. 116–94, § 604(a)(5), designated introductory provisions as par. (1), inserted par. heading, struck out “for the first applicable fiscal year or any subsequent fiscal year” after “a State”, substituted “subsection (a)” for “subsections (a) and (b)” and “up to 10 percent of the amount determined under section 300x–33 of this title for the State for the applicable fiscal year.” for “equal to—”, added par. (2), and struck out former pars. (1) to (4), which related to allotment reductions for first applicable fiscal years and three following fiscal years. Pub. L. 116–94, § 604(a)(3), redesignated subsec. (c) as (b). Former subsec. (b) redesignated (a). Subsec. (c). Pub. L. 116–94, § 604(a)(6), added subsec. (c). Former subsec. (c) redesignated (b). Subsec. (d). Pub. L. 116–94, § 604(a)(2), (6), added subsec. (d) and struck out former subsec. (d) which defined “first applicable fiscal year”. Subsec. (e). Pub. L. 116–94, § 604(a)(6), added subsec. (e).
Reference
Citations & Metadata
Citation
42 U.S.C. § 300x–26
Title 42, The Public Health and Welfare
Last Updated
Sep 23, 2026
Release point: 119-110